Thanks for the response, based on which i have done below and i am stuck in the last stage. For clarity sake i've treid to put max info on what i did and the issues i am facing (Highlighted in Red color)
1) Installed WDS on secondary site, using server manager --> add roles.
2) Added PXE role from configuration manager console to the sec site (Skipped Configure WDS PXE Filter - No plans for MDT 2010)
3) Added a new 32-bit image (not 64) and updated the Distribution points (Pri and Sec sites) successfully
4) Imported our XP sp3 CD as install package successfully and updated to the distribution point (Sec site) successfully
5) Extracted the contents of deploy.cab into a shared folder called sysprep on pri site (NOT ON SEC SITE), then created a sysprep package and updated to the distribution point (Sec site) successfully
6) Created package from definition (Config manager client) and updated the the distribution point (Sec site) successfully
7) Create the task sequence successfully - exactly as shown in your guide.
Just before adding option 66 and 67 i was verifiying the path of boot file in REMINST folder on my secondary site server, i found that all directories inside are empty. (Disappointing moment )
On the other hand i can see that all required packages are successfully copied under SMSPKGD$ on sec site. (Boot image, XP, sysprep and SCCM client package)
Initially i faced some issues starting my PXE component but it worked fine after rebooting sec site server. (Verified by looking into pxecontrol.log)
What could be the probable reason behind empty directories of REMINST folder? in adddition i have created "captures" shared folder(during the task sequence) on Primary site, where i am actually trying to caprtue a machine on sec site.. Can i edit the task sequence to point to a share on sec site?